Aerospace And Defense MRO Market Growth & Trends
The global aerospace and defense MRO market size is expected to reach USD 187.3 billion by 2030, according to a new report by Grand View Research, Inc. It is expected to expand at a CAGR of 5.5% from 2022 to 2030. The growth of the aerospace and defense MRO industry is underpinned by expansions of aircraft fleets, rapid urbanization in emerging economies, an increased number of tourists worldwide, and the penetration of low-cost carriers (LCC).
The increasing defense expenditure of emerging economies such as China and India is driving investments in the modernization of equipment deployed in existing aircraft, primarily by incorporating them with new and sophisticated technologies. The rise in air passengers in commercial aircraft and freight traffic worldwide has led to a surge in aircraft fleet utilization, thereby augmenting the need for aircraft MRO services.
OEM and global third-party MRO companies operating have adopted advanced predictive and preventive aircraft maintenance technologies to digitize and automate their airframe maintenance activities to enhance the overall efficiency of the maintenance processes. The deployment of advanced technologies such as artificial intelligence and machine learning is expected to provide opportunities for firms to compete at the global level and reduce MRO expenses.
There is a presence of a large number of players with various MRO capabilities offering services both globally and regionally. The leading players are focusing on maintaining strategic relationships with aftermarket suppliers of aircraft parts to ensure uninterrupted MRO services. Moreover, declining market growth, leveling off outsourcing, and rising number of OEMs in the aftermarket have intensified the competitive rivalry in the MRO market.
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Aerospace And Defense MRO Market Report
Aerospace And Defense MRO Market Report Highlights
- Based on product, the engine segment held the largest share in 2021 owing to the adoption of additive manufacturing technology and the requirement for the proper maintenance and repair of aircraft engines and their components. Engine MRO service providers use new technologies such as robotics, artificial intelligence, digital twinning, blockchain, and big data for capturing data related to the health of aircraft engines and monitoring them regularly
- By application, narrow-body aircraft accounted for the largest share in 2021. These aircraft are preferred by commercial airlines due to the high-frequency service, competitive environment in which airlines operate, and the way airport capacity is priced and allocated. Growing international travel and trade have increased the travel frequencies of narrow-body commercial and cargo planes, which has propelled the growth of the MRO services in the narrow-body aircraft segment
- Asia Pacific is expected to register the fastest CAGR over the forecast period. Rapid economic growth, urbanization, the launch of new domestic airlines, low-cost labor in countries such as India and China, and government support in establishing the aerospace clusters are driving the need for more aircraft and expanded aviation services in the region
- The market went through an unprecedented disruption due to the COVID-19 pandemic. With the easing of lockdowns and restrictions on international travel, airlines have announced the expansion of operations, which is expected to fuel the demand for commercial aircraft MRO services. Commercial airplanes and services are showing signs of recovery from the impact of COVID-19, while the global defense, space, and government services have remained stable
- To ensure uninterrupted MRO services, leading players put a strong emphasis on maintaining strategic relationships with aftermarket suppliers of aviation parts. The rivalry in the MRO sector has also increased as a result of declining market growth, leveling off outsourcing, and a rise in OEMs in the aftermarket
